Transcription

2 Agenda Evolution of the market Defining the opportunity & problem of the consumption business model Consumption lifecycle Software sector: Leading the growth of the consumption model Evolution of licensing and entitlement management Software lifecycle management in the consumption model The digital supply chain Capabilities for the digital supply chain State of the industry: XaaS Innovation cycle Evolving business Growing the consumption business 2

4 The business problem: How to succeed in the consumption model? Post world war II Profit drivers Mass production Product variation Offering consumption or use Profits managed by Market creation and expansion Automation for non linear growth Increase consumption by becoming relevant and impactful to each consumer How to increase consumption beyond a good offering? So where is the problem? There is no off the shelf solution that can record, manage, offer consumption information and make Ability to offer, price every it actionable for fulfillment consumption point desired by users There is no rules management capabilities for Measuring, rating & billing for the consumption embedded in the solution that can consumption be managed outside of ERP, CRM, SCM Capturing and providing the applications creating integration complexity consumption status for each There is no integration and no recommendation consumer and enabling in-service logic for leveraging social or personal data to consumption variations recommend, suggest, create new consumption Leveraging trends, collaboration and points consumption patterns to create new options for consumption Serent 4

5 Lifecycle view of managing consumption Provisioning and orchestration Entitlement Control consumption Authentication Authorization Account Create & define consumption Provide service Consumption Lifecycle Mgmt Configure consumption Items/elements Deliver consumption Items /elements Enable Consumption Who can use? What can be used? How to track usage? Consumption lifecycle is very similar to software licensing lifecycle In software licensing, you create a license, entitle the licensee/buyer and then control the rights of use of the software by enforcing the licensing policy. 5

8 Evolution of licensing models Licensing models Dimensions Perpetual Licensing Term Licensing Subscription Consumption or Usage Value- Based Open Source Hybrid Ecosystem Marketplac es Ownership Rights Perpetuity Time Limited Time & Service Limited Usage Limited Any Public Time & usage limited Time Limited Time and membership limited Typical Delivery Event Driven Transaction Event Driven Transaction Both Both Both Real Time Usage Both Subscription Subscription Revenue Model Up-Front Up-Front or Allocated Periodic Variable Indirect Support fees Periodic and variable Up-Front or Allocated Upfront and allocated; trade related metrics Payment Pattern One time and periodic Periodic Periodic Usage Based/Pay per Use Royalty/ benefit None/ periodic for support Up-Front or Custom Upfront and Periodic: virtual currency options Upfront and Periodic Unit Measure Per License or Per Seat Per License or Per Seat Per Subscriber Per Technical Metric/ Transaction Per Busines s Metric/ Per Feature Per Transaction or Usage Per subscriber and technical metrics Per subscriber Per Subscriber 8

9 Evolution of entitlements management Entitlements linked to host OS in terms of pricing and fulfillment Emergence of enterprise licensing for usage control and pricing. Emergence of digital fulfillment. Need to align attribute based pricing with licensing enforcement. Usage monetization and instant -on digital supply chain critical to profitable growth. Emergence of Entitlements management as key functionality Entitlements linked to host platform at code level. Renewals, upgrades linked to host renewals and upgrades. Separate code base for each version of software. Physical fulfillment required. No attribute based pricing 2000 Emergence of licensing to control attribute based pricing. Dependency on physical fulfillment. Monetization of entitlements critical to profitable revenue. Entitlements a critical component of licensing. Self service based, automated fulfillment of software and XaaS enabled by entitlements management. 9

16 Change State of the industry: Evolving business Impact Driver Execution What do customers buy? New bundling model What do I do with my current products? How do customers buy? New sales model What do I do with my sales team/ channel? How do I pay them? How do customers pay? New pricing and licensing model What to do with my margins? How do customers use what they bought? New delivery model How do I get more agile? How do I get more aware of their needs? How do customers enhance what they bought? New services model How do I change from a product to services company? Strategy Structure People Process Technology Corporate governance model Data security and privacy Risk and compliance Org design and change management Financial modeling Controls and processes Tax structuring Metrics and monitoring 16

17 State of the industry: Growing the consumption business High number of offerings D C E.g. increase revenues through expansion of offerings portfolio for local and global markets (TAM*) Low Revenue B High Revenue A Current position of typical SaaS vendors Low number of offerings E.g. increase revenues through sales of existing/ rationalized offerings for targeted customer segments E *TAM refers to Total Addressable Market 17

Openbravo Subscription and Recurring Billing Managing a Subscription-based Business and How a Technology Giant Did It 1 Presenter Jon Setuain Senior Consultant at Openbravo 2 Trusted Vendor World leader

WHITE PAPER: Egenera Cloud Suite ... Introduction Driven by ever-increasing business demand, cloud computing has become part of many organizations IT strategy today. Driving this transition is the need

From Virtualized to ITaaS 1 Priority Discussion Topics Laying the foundation for IT-as-a- with the right architecture Key process areas and capabilities that need to be rethought during the process (ie.

WHITE PAPER Subscription Business 2.0 Is your business ready for it? GET IN TOUCH (844) 4OB-SOFT sales@onebillsoftware.com 2015 OneBill www.onebillsoftware.com 1 What is a Subscription 2.0 Billing Platform?

PARTNER BRIEF Service Operations Management from CA Technologies are you helping your customers achieve their expectations for IT based service quality and availability? FOR PARTNER USE ONLY DO NOT DISTRIBUTE

SERVICES Software licensing and entitlement management delivered in the cloud for the cloud The Software Industry and the Cloud Enterprise organizations are rapidly discovering the flexibility of cloud-based

Avnet's Guide to Cloud Computing Reimagine Transform Accelerate Cloud Computing from A Z Avnet can help you reduce complexity by understanding the terminology and phrases associated with cloud computing.

RL Consulting IT Service Management The Role of Service Request Management Prepared by: Rick Leopoldi June 1, 2007 Copyright 2001-2007. All rights reserved. Duplication of this document or extraction of

Building High Growth Services on the Microsoft Cloud Platform Rich Cannon Senior Director, US Partner and Cloud Services Momentum 35% YoY revenue growth Hosters are largest contributor across all partner

The Order Management Tipping Point: Why Salesforce is at the Center of the New Communication Service Provider Architecture Sponsored by Technology Changing the Customer Change is constant for all industries,

Copyright 11/1/2010 BMC Software, Inc 1 Copyright 11/1/2010 BMC Software, Inc 2 Copyright 11/1/2010 BMC Software, Inc 3 The current state of IT Service How we work today! INCIDENT SERVICE LEVEL DATA SERVICE

The Order Management tipping point Why Salesforce is at the center of the new Communication Service Provider architecture Why Salesforce is at the center of the new Communication Service Provider architecture

SOA Challenges Why is Business Architecture Important What is MSBA Using MSBA as the Foundation for SOA SOA in context 1 SOA holds out enormous promise to revitalise the business value of IT... but early

Launch Products. Retain and Service Your Customers. Generate Recurring Revenues Across Any Channel. Accelerate Customer Insight. Software as a Service (SaaS) is quickly becoming the preferred mode of delivery

Digital Transformation/ Lead to Order Overview of Trends, Complexity and Transformation for Lead to Order Process Next generation trends Trends Characteristics Social experience Cloud Everything is Digital

Zuora: Build Your Business, Not Your Billing System A Neovise Vendor Perspective Report Introduction The primary objective for any business organization is to deliver value to its customers at a profit.

A new level Service catalogue in efficiency Introducing Qvantel BSS services A new level in efficiency As the global telecom operator landscape remains highly competitive, pressure is created for operators

VMware Subscription Services Updated Q3 2013 VMware Main Title Main Title Main Title Subtitle V.3.0 / Updated March 2013 PROGRAM GUIDELINE CATEGORY Partner Network Program Guideline Table of Contents Purpose

Testing Platform-as-a-Service Get Significant Application Quality Improvement without Major Investment Performance driven. Quality assured. Testing the way we do it Application testing can get expensive.

White Paper: Private Clouds The ongoing debate on the differences between a Public and Private Cloud are broad and often loud. The bottom line is that it s really about how the resource, or computing power,

Radware ADC-VX Solution The Agility of Virtual; The Predictability of Physical Table of Contents General... 3 Virtualization and consolidation trends in the data centers... 3 How virtualization and consolidation

JDA Cloud Services We Keep Our Head In The Clouds John Frazier January, 2012 1 Gartner CIO IT Strategies 2011 IT strategies for 2011 strongly focus on creating infrastructure while streamlining costs and

Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment

A Point of View Next Generation Electric Utilities Gear up Using Cloud Based Services Abstract Globally, liberalization of the electricity sector has driven a paradigm shift in the ownership structure,

Radware ADC-VX Solution The Agility of Virtual; The Predictability of Physical Table of Contents General... 3 Virtualization and consolidation trends in the data centers... 3 How virtualization and consolidation

The Journey to SaaS Profitability Four considerations for software executives Technology Institute October 2014 For SaaS providers, the journey to profitability is filled with challenges: Is your company

Cisco IT Article September 2012 Enterprise Architecture and IT Service Management Business Transformation through Architectures Enabling Business Transformation with Enterprise Architecture and IT Service

Trends and Directions of SaaSS in Asia/Pacific Yanna Dharmasthira October 2013 Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with written approval

A Whitepaper for Corporate Decision-Makers Optimizing the Monetization of a Connected Universe Leveraging a Carrier-Grade Billing Platform to Maximize Service Revenues in the New Digital & Subscription

BILLING HOW IT CAN MAKE OR BREAK A CLOUD SERVICE PROVIDER A channel guide CONTENTS Introduction 3 The Billing Process 3 Public, Private and Hybrid Cloud Billing Requirements 4 Cloud Service Providers Billing

How to Achieve a Cloud-Connected Experience Using On-Premise Applications WHITEPAPER The cloud is influencing how businesses wish to use and be charged for the software they acquire. Pay per use, metered

Developing the edge or scaling the core through corporate venturing Internet of Things Daan Witteveen Global M2M Connections (billion) The Global IOT Market is expected to see a forecasted to grow at a

I need to support the products and services we sell I need quoting for subscription, recurring charges and bundles I want customers to selfservice problems and place orders online I want effective product

The New Era Of Software As A Service What is Software as a Service : Definition Simply put: Software deployed as a hosted service and accessed over the Internet. Francesco Albano Technical Evangelism Manager

IT AS A SERVICE BROKER MIT Sloan CIO Symposium May 21, 2014 Thomas P. Roloff Senior Vice President EMC Global Services twitter: @TRoloff 1 Why Transformation? Business is Changing Faster Than IT Business

Three simple steps to effective service catalog and request management Prepare for cloud initiatives and get incremental ROI with self service catalog and request management Business white paper Executive

Accenture & NetSuite Gray background is only to allow visibility of all elements on page. Delete as needed. Delivering High Performance Turn off NOTES in Layers menu to Through the Cloud eliminate these

Where in the Cloud are You? Session 17032 Thursday, March 5, 2015: 1:45 PM-2:45 PM Virginia (Sheraton Seattle) Abstract The goal of this session is to understanding what is meant when we say Where in the

Campus One and The s Defined University What does IT do when it doesn t run IT anymore? Gerry Carroll Marketing Director gerry.carroll@uk.logicalis.com Closing the digital divide HE consumer experience

vcd Cloud Marketplace Portal Are you a VMware vcloud Air Network service provider in need of a turnkey portal for your vcloud Director infrastructure? Now you can use the AirSembly cloud marketplace portal.